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ams-OSRAM (AMSSY)
OTHER OTC:AMSSY
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ams-OSRAM
(OTC:AMSSY)
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Rating:48Neutral
Price Target:
$5.00
▼(-3.66% Downside)
Action:ReiteratedDate:02/18/26
The score is held back primarily by weak financial performance: shrinking revenue, ongoing net losses, high leverage, and deteriorating free cash flow despite some operational improvement. Technicals add moderate support with improving short-term momentum but a still-weak longer-term trend. The earnings call adds a modest positive tilt due to strong liquidity, deleveraging actions and executed cost savings, though near-term guidance includes multiple headwinds. Valuation remains constrained by negative earnings and no dividend support.
Positive Factors
Packaged LED Market Leadership
Attaining the #1 global position in packaged LEDs by value is a durable competitive advantage: it reflects scale, pricing power and entrenched OEM relationships in automotive and professional lighting, improving long-term bargaining power and platform stickiness across multi-year vehicle cycles.
Design-Win Momentum
A >€5bn lifetime design-win funnel (and >€1bn in the last quarter) provides durable revenue visibility across automotive, consumer and professional segments. Multi-year platform wins translate into recurring bill-of-materials revenue and underpin semiconductor growth targets beyond short-term cyclicality.
Liquidity, Cost Savings & Deleveraging
Strong liquidity, realized €220m run-rate savings and planned €670m transaction proceeds materially improve financial flexibility. These structural improvements support refinancing, allow continued investment in semiconductors, and reduce solvency risk while management pursues further margin and FCF targets.
Negative Factors
Multi-year Revenue Contraction
Sustained multi-year top-line decline erodes scale economics, increasing unit costs and pressuring margins. Shrinking revenue reduces capacity to absorb fixed costs and undermines long-term growth targets, making it harder to convert design wins into proportional revenue without market share recovery.
Elevated Leverage and Weakened Equity Cushion
High leverage and a declining equity base constrain financial flexibility and heighten refinancing risk. With ongoing net losses and volatile FCF trends, elevated debt amplifies interest burden and limits strategic optionality if demand weakens or execution on cost and divestment plans slips.
Divestments Reduce Revenue and Create Stranded Costs
Portfolio disposals materially shrink the revenue base and cause stranded costs and one-offs during transition. While strategically refocusing, these structural sales create near-term EBITDA headwinds and raise the burden on remaining segments to deliver growth and margin expansion to meet medium-term targets.
ams-OSRAM (AMSSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend YieldN/A
Average Volume (3M)25.00
Price to Earnings (P/E)―
Beta (1Y)1.92
Revenue Growth-1.75%
EPS Growth79.67%
CountryUS
Employees19,700
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.12
Shares Outstanding199,688,780
10 Day Avg. Volume0
30 Day Avg. Volume25
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.92
Price to Sales (P/S)0.26
P/FCF Ratio22.80
Enterprise Value/Market Cap1.90
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda3.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ams-OSRAM Business Overview & Revenue Model
Company Descriptionams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and the Asia/Pacific. The company operates through Semiconductor and Lamps & Systems segments. The Semiconductor segment offers semiconductor-based products and solutions, such as LEDs, lasers, and optical and image sensors for automotive, consumer, and industrial end markets. The Lamps & Systems segment provides lamps and lighting systems, such as spectral sensing, ambient and smart lighting, horticulture lighting, time-of-flight, presence detection, near-infrared, human-centric lighting, outdoor and indoor lighting solutions for automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG was founded in 1981 and is headquartered in Premstätten, Austria.
How the Company Makes Moneyams-OSRAM generates revenue primarily through the sale of its semiconductor and sensor products, which cater to multiple sectors such as automotive, industrial, and consumer electronics. Key revenue streams include the production of optical sensors, ambient light sensors, and LED lighting solutions. The company benefits from strategic partnerships with major automotive manufacturers and electronics companies, enhancing its market reach and customer base. Additionally, ams-OSRAM invests significantly in research and development to innovate and expand its product offerings, which contributes to its competitive advantage and revenue growth.
ams-OSRAM Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strong strategic and operational achievements (market leadership in LEDs, robust design‑win funnel, early delivery of EUR 220m cost savings, improved adjusted EBITDA margin, solid free cash flow and material deleveraging progress) alongside notable near‑term headwinds (IFRS revenue decline driven by FX and divestments, gold and raw material cost pressure, temporary EBITDA hit in 2026 from one‑offs and stranded costs, elevated financing costs until refinancing, and workforce restructuring risks). While the company has clear structural plans and substantial liquidity to execute its transition and long‑term targets, the short‑term outlook is balanced by meaningful risks and expected temporary earnings/headline revenue impacts.Q4-2025 Updates
Positive Updates
Core Semiconductor Growth (Full Year and Q4)
Full-year core semiconductor portfolio grew ~7% year‑on‑year at constant currencies; Q4 core semiconductor business grew ~8% year‑on‑like‑for‑like basis, in line with the company's semi target operating model.
Market Leadership in Packaged LEDs
For the first time ams‑OSRAM achieved the #1 position globally as a packaged LED supplier by value, a strategic milestone strengthening its competitive position with automotive OEMs and professional lighting customers.
Design Win Momentum
More than EUR 5 billion of new lifetime design win value added to the pipeline (third consecutive year), including >EUR 1 billion booked in the last quarter and multiple triple‑digit million euro design wins across consumer, automotive and professional segments.
Margin and Cost Savings Progress
Adjusted EBITDA margin improved ~1.5 percentage points year‑on‑year; Re‑establish‑the‑Base program delivered EUR 220 million of run‑rate savings one year ahead of plan. Q4 adjusted EBITDA increased 7% year‑on‑year despite FX headwinds.
Strong Free Cash Flow and Liquidity
Delivered EUR 144 million free cash flow (adjusted for pension financing) for Q4 and full year; cash on hand close to EUR 1.5 billion and available liquidity of EUR 2.2 billion. CapEx remained disciplined and below the 8% target.
Deleveraging and Transaction Proceeds
Announced two portfolio transactions with expected proceeds of EUR 670 million. Pro forma leverage improves from 3.3x to ~2.5x; excluding OSRAM puts net debt would be ~EUR 850 million (≈1.6x). Bought back EUR 200 million of convertible notes in January.
Strategic Roadmap and Long‑Term Targets
Launched Simplify program targeting an additional EUR 200 million in annual cost savings; reiterated 2030 over‑cycle targets including semiconductor adjusted EBITDA margin >25%, mid‑ to high‑single‑digit semiconductor revenue growth from 2027, group free cash flow > EUR 200 million post‑refinancing and net debt/EBITDA <2x.
Exceptional Q4 Lamps & Systems Performance
Aftermarket lamps demand surged in Q4 (short‑notice customer orders after competitor weakness), driving strong seasonal upswing and a >80% sequential profitability increase for the division; Specialty Lamps contributed a final full quarter prior to sale.
Negative Updates
IFRS Revenue Decline and FX Impact
IFRS top line declined ~3% year‑on‑year. Currency headwinds (weaker U.S. dollar) reduced revenue by ~EUR 100 million for the year and cost the company ~EUR 55 million of top line versus prior year; management noted USD moves meaningfully affect revenue (≈EUR 20 million per $0.10).
Negative 2026 Near‑Term Outlook and One‑Offs
2026 adjusted EBITDA expected to be negatively impacted by several one‑offs (divestments selling EBITDA to buyers), stranded costs from deconsolidation, higher precious metal prices and persistent financing costs; management warned of a temporary drop in adjusted EBITDA in the transition year '26.
Precious Metals Cost Pressure (Gold)
Gold price spike added ~EUR 35 million cost in 2025 (≈2% OS division margin); assuming an average USD 5,000/oz could add ~EUR 60 million more compared to 2025, equating to ~4% OS margin hit and ~2% group margin impact. Hedging mitigates but does not eliminate the risk.
Divestments Reduce Revenue and Create Stranded Costs
Sale of Specialty Lamps (~EUR 150 million revenue, ~EUR 15 million EBITDA) and non‑optical sensor business (~EUR 200 million revenue, ~EUR 60 million EBITDA) will remove material revenue and EBITDA from the group; management estimates roughly EUR 30 million of stranded costs to be addressed over ~1 year.
High Financing Cost in 2026 until Refinancing
Financing costs remain elevated in 2026 (approx. EUR 250–300 million until senior note refinancing), weighing on free cash flow; management expects refinancing to materially reduce annual interest to below EUR 150 million thereafter.
Workforce Reductions and Restructuring Risk
Simplify program will affect ~2,000 colleagues (≈50% Europe, significant actions in Germany and relocation of production/R&D to Asia). Execution of workforce reductions, factory transitions and automation carries execution and one‑off costs risk.
Automotive and Consumer Demand Uncertainty
Automotive sales faced seasonal sequential declines, very lean customer inventories and no meaningful supply‑chain restocking; potential DRAM/memory tightness and softening Chinese market volumes introduce execution risk and pricing pressure, particularly in China where competition and margin pressure are intensifying.
Segment‑Specific Margin Pressures
CSA margins were down sequentially and versus prior year due to unfavorable product mix, FX effects and inventory cleanup; group top line also weighed by Lamp OEM decline (fewer factory new cars) and the Q2 supply chain adjustment.
Company Guidance
The company guided Q1 FY26 revenues of EUR 710–810m with adjusted EBITDA around 15% ±1.5pp, based on a EUR/USD rate of $1.19 (USD 0.1 ≈ EUR 20m revenue/year; the move from $1.13 to $1.19 ≈ a ~EUR 20m headwind). For FY26 management said group revenue could be slightly softer than FY25 because of divestments and a weaker dollar: Specialty Lamps (~EUR 150m revenue / ~EUR 15m EBITDA) is expected to be deconsolidated for one month of Q1, the non‑optical sensor business (~EUR 200m revenue / ~EUR 60m EBITDA) likely mid‑year, and both deals carry roughly EUR 30m of stranded costs to be removed over ~12 months; adjusted EBITDA will also be hit by one‑offs, stranded costs and higher precious‑metal costs (gold added EUR 35m in 2025 and an assumed USD 5,000/oz average could add ~EUR 60m vs. 2025, ~4pp impact on OS and ~2pp on group). Liquidity and deleveraging metrics underpin the outlook: Q4/FY free cash flow was EUR 144m (adjusted for pension financing), cash on hand ~EUR 1.5bn, available liquidity EUR 2.2bn, expected divestment proceeds EUR 670m, pro‑forma leverage falls from 3.3x to 2.5x (excluding OSRAM puts net debt ≈ EUR 850m → ~1.6x), and a EUR 200m convertible buyback was completed. Management reiterated cost targets to support margins—Re‑establish‑the‑Base delivered EUR 220m run‑rate savings a year early and the new Simplify program targets an additional ~EUR 200m annual savings—and flagged 2026 financing costs of ~EUR 250–300m until refinancing (with a target sub‑EUR 150m thereafter) and 2030 over‑cycle targets of semiconductor mid‑ to high‑single‑digit revenue growth from 2027 and >25% adjusted EBITDA, group capex up to 8% of sales, group FCF well above EUR 200m and net debt/EBITDA <2x.ams-OSRAM Financial Statement Overview
Summary
Despite operational improvement (EBIT turning positive and steady ~21% EBITDA margin), the fundamentals remain pressured by multi-year revenue contraction (including ~21% decline in 2025), continued net losses, elevated leverage (debt-to-equity ~2.7x with declining equity), and weakening free cash flow in 2025 (still modestly positive).Income Statement
Revenue has been shrinking for several years (down ~21% in 2025 after declines in 2024 and 2023), signaling a challenging demand and/or mix environment. Profitability has improved meaningfully versus 2023–2024 (EBIT turned positive in 2025 and EBITDA margins held around ~21%), but the company is still losing money (negative net margin in 2025). Gross margin is stable in the mid‑20% range, yet the business has not consistently translated this into bottom-line profits.34
Negative
Balance Sheet
Leverage is elevated: debt is well above equity (debt-to-equity ~2.7x in 2025), and equity has trended down from 2022 to 2025, reducing balance-sheet cushion. Total debt is slightly lower versus 2024, but still high relative to the company’s size and earnings power. The combination of ongoing losses and higher leverage increases financial risk and limits flexibility if the downturn persists.39
Negative
Cash Flow
Cash generation remains positive, with operating cash flow of ~€237M in 2025 and modest positive free cash flow (~€38M), but both have weakened versus prior years and free cash flow growth is sharply negative in 2025. Operating cash flow covers only a small portion of debt (~12% in 2025), which is a constraint given the leverage profile. The positive free cash flow despite net losses is a constructive sign, but the trajectory is volatile and currently weakening.36
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.32B | 3.43B | 3.59B | 4.82B | 5.04B |
| Gross Profit | 848.00M | 857.00M | 1.02B | 1.26B | 1.44B |
| EBITDA | 693.00M | 462.00M | 471.00M | 855.00M | 938.00M |
| Net Income | -130.00M | -786.00M | -1.61B | -444.00M | -32.00M |
Balance Sheet | |||||
| Total Assets | 6.81B | 6.90B | 7.40B | 8.83B | 9.64B |
| Cash, Cash Equivalents and Short-Term Investments | 1.56B | 1.12B | 1.18B | 1.11B | 1.34B |
| Total Debt | 2.56B | 2.69B | 2.67B | 3.02B | 3.40B |
| Total Liabilities | 5.86B | 5.67B | 5.50B | 6.00B | 6.49B |
| Stockholders Equity | 942.00M | 1.23B | 1.90B | 2.83B | 3.14B |
Cash Flow | |||||
| Free Cash Flow | 38.00M | -67.00M | -375.00M | 62.00M | 482.00M |
| Operating Cash Flow | 237.00M | 435.00M | 674.00M | 599.00M | 792.00M |
| Investing Cash Flow | 299.00M | -424.00M | -826.00M | -183.00M | -560.00M |
| Financing Cash Flow | -97.00M | -98.00M | 245.00M | -726.00M | -534.00M |
ams-OSRAM Technical Analysis
Neutral
5.19
Price Trends
5.30
Negative
5.45
Negative
5.98
Negative
Market Momentum
-0.06
Positive
50.04
Neutral
67.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AMSSY, the sentiment is Neutral. The current price of 5.19 is below the 20-day moving average (MA) of 5.33, below the 50-day MA of 5.30, and below the 200-day MA of 5.98, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 50.04 is Neutral, neither overbought nor oversold. The STOCH value of 67.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AMSSY.
ams-OSRAM Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.04B | 12.15 | 11.84% | ― | -2.04% | 8.84% | |
66 Neutral | $3.97B | -81.41 | -10.74% | ― | 12.05% | 14.24% | |
62 Neutral | $1.86B | 47.89 | 4.13% | ― | -3.90% | -41.66% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $1.58B | 32.53 | 4.96% | 4.48% | -3.62% | -20.33% | |
58 Neutral | $2.27B | -12.55 | -30.27% | ― | -38.06% | -50.14% | |
48 Neutral | $1.04B | -6.67 | -12.96% | ― | -1.75% | 79.67% |
* Technology Sector Average
AMSSY
ams-OSRAM
5.26
-0.26
-4.77%
HIMX
Himax Technologies
9.06
-0.04
-0.43%
PLAB
Photronics
34.68
13.21
61.53%
VECO
Veeco
30.76
9.17
42.47%
LASR
nLIGHT
71.14
61.93
672.42%
NVTS
Navitas Semiconductor
9.82
7.34
295.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.